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Fundstrat: Bitcoin Will Hit $180K in Seven Months

Summary:
Could bitcoin, the world’s number one digital currency by market cap, reach a whopping price of about 0,000 before the end of next year? According to representatives of financial agency Fundstrat, the answer is a resounding “yes.” Fundstrat Predicts Big Things for Bitcoin Fundstrat is a company that’s headed by the effervescent Tom Lee, who’s known for making large and wild predictions about where the price of bitcoin will be in the coming future. While he hasn’t always been right, hearing Lee’s words about bitcoin has become something of a staple for the industry and those who take part in it, and one can often assume that whenever bitcoin makes some sort of drastic price move, Lee will be in the wings commenting about it. Only this time, it’s not Lee

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Could bitcoin, the world’s number one digital currency by market cap, reach a whopping price of about $180,000 before the end of next year? According to representatives of financial agency Fundstrat, the answer is a resounding “yes.”

Fundstrat Predicts Big Things for Bitcoin

Fundstrat is a company that’s headed by the effervescent Tom Lee, who’s known for making large and wild predictions about where the price of bitcoin will be in the coming future. While he hasn’t always been right, hearing Lee’s words about bitcoin has become something of a staple for the industry and those who take part in it, and one can often assume that whenever bitcoin makes some sort of drastic price move, Lee will be in the wings commenting about it.

Only this time, it’s not Lee himself making drastic predictions about where bitcoin will go, but rather his Fundstrat constituents. The comments about bitcoin’s drastic price increase came in a note released to investors in late July. It was suggested that this price could be struck prior to the April halving that’s set to occur in 2024. For this to happen, bitcoin would need to rise by more than 520 percent in seven months.

The writers seem to believe this could happen as they are confident the new bitcoin-based ETF application from BlackRock will be approved by the SEC. This, they say, will not only cause bitcoin to explode, but open doors for other companies to submit similar applications, which in turn, can only lead to further (heavy) growth for the space.

From there, the halving will take place, which will make bitcoin skyrocket further. The note says:

This [bitcoin ETF launch] would bring daily demand to $125 million, while daily supply is only $25 million. The implied equilibrium price would need to rise so daily supply matches daily demand. Equilibrium analysis suggests that a clearing price is $140,000 to $180,000, before the April 2024 halving.

Halvings always makes bitcoin rarer and thus more valuable. Per Sean Farrell – the head of digital asset strategy at Fundstrat – a multiplier effect could also come into play that could ultimately mean more demand for bitcoin miners and more units added to circulation following next year’s event. He said:

This means that $1 of demand can result in a $4 to $5 increase in market cap. We anticipate [a bitcoin ETF] would attract new investors and generate increased demand for bitcoin.

Will the SEC Be Kinder?

Many ETFs have come along and failed with the SEC. However, several analysts think the circumstances surrounding BlackRock will be different given BlackRock is a huge standard financial firm that has a strong and stable history with the SEC.

Thus far, the company has employed more than 500 greenlit contracts and applications through the agency.

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